Tenant Protection Unit Secures $600,000 Settlement with Bronx Lan...

New York State Homes and Community Renewal Commissioner RuthAnne Visnauskas today announced a $608,000 settlement with Bronx landlord Ignacio Castillo following a Tenant Protection Unit (TPU) investigation that uncovered illegal rent increases at 11 rent-regulated buildings in the Hunts Point, Longwood, and University Heights sections of the Bronx.

The TPU settlement agreement covering 36 tenants directs Mr. Castillo and his associated holding companies to reset rents that were improperly increased, issue new rent stabilized leases, and provide refunds in the form of monthly rent credits or refunds for overcharges.

"This $600,000 settlement will allow dozens of tenants to recoup thousands of dollars in rent they were unaware they overpaid, and it sends a clear message that we are working every day to methodically root out improper rent increases across the city," said HCR Commissioner RuthAnne Visnauskas. "When so many individuals and families are struggling with rising prices and inflation, it's more important than ever that we have their back. Thankfully, the Tenant Protection Unit under Governor Hochul is protecting our rent regulated housing stock and ensuring it remains affordable for nearly two million New Yorkers."

TPU's audit of Individual Apartment Improvements of Mr. Castillo's building portfolio uncovered suspicious rent increases in one of the 11 rent-regulated buildings he owns. When Mr. Castillo was required to justify the rent increases and substantiate the apartment improvements, TPU identified 36 apartments where the owner raised rents above what the Housing Stability and Tenant Protection Act of 2019 lawfully allowed.

Mr. Castillo, who fully cooperated with the investigation, has agreed to issue new leases with the legal regulated rent and refund the overcharges.

The investigation and settlement were led by Associate Counsel and Legal Director Jonathan O. Hurt and Senior Attorney Brittany Taylor, Director of Audits/Investigations Lewis Gray, under the leadership of Commissioner RuthAnne Visnauskas, TPU Deputy Commissioner Jooyeon Lee, and Assistant Commissioner and TPU Chief of Staff Argyro Boyle.

TPU continues to conduct forensic rent audits of buildings across New York City's rent regulated apartment buildings.

About the Tenant Protection Unit

TPU preserves renters' rights by detecting and curtailing patterns and practices of landlord fraud and harassment through proactive audits, investigations, and legal actions. The TPU also encourages compliance with the law by informing tenants and owners of their rights and responsibilities under rent regulation.

In October 2025, the TPU secured a $3.1 million settlement with the Lefrak Organization, the largest-ever, ending illegal water usage charges. The settlement terminates these unlawful water surcharges, ensures full refunds with nine percent interest for nearly two thousand affected tenants, and requires ongoing independent monitoring to safeguard compliance.

In March 2025, the TPU imposed a $400,000 settlement on Bottem Realty for fraudulent and late apartment registrations, rent overcharges, and tenant harassment. In February 2024, the TPU announced a $514,000 settlement against Steve Croman for overcharging tenants and violating the rent laws.

If a tenant believes they are being overcharged and/or harassed, they should contact the Tenant Protection Unit at: 212-872-0788 or via email:[email protected].